The House of Representatives Public Accounts Committee has directed the Obafemi Awolowo University Teaching Hospital (OAUTH), Ile-Ife, Osun State, to submit a comprehensive list of Health Maintenance Organizations (HMOs) owing the federal government a total of N49,043,942.43 for the period spanning from 2021 to 2025.
This decision came during the committee’s review of the Auditor General’s 2021 report, which raised concerns about the hospital’s inability to recover outstanding debts.
The report highlighted an unrecovered debt of N32,250,706.30 from 33 HMOs as of December 31, 2020.
It also pointed out that despite these debts, the hospital continued to provide services to these organisations, many of which had substantial arrears.
Speaking at the hearing, the hospital’s Chief Medical Director, Professor John Okeniyi, explained the challenges the hospital faces in recovering debts from HMOs.
“It’s very difficult to refuse to treat Nigerians coming to our hospital, regardless of their ability to pay,” Okeniyi stated.
He further explained that the low coverage of Nigerians by the National Health Insurance Authority (NHIA) meant that many patients had to pay out of pocket.
Additionally, those covered by NHIA often had to rely on HMOs, which were notorious for delays and underpayments.
Okeniyi also addressed specific issues with two HMOs covering Obafemi Awolowo University students.
“Students are expected to receive their tertiary care at our hospital, but when they come, we provide services, and the HMOs do not reimburse these fees,” he added.
Despite these challenges, Okeniyi revealed that the hospital had set up a task force, led by the hospital’s head of NHIA, Mr. Lekan Ahmed Orabiyi, to recover the debts.
He shared that significant progress had been made, with the hospital successfully recovering N15,969,828.30 of the N32 million in debts identified in the Auditor General’s 2021 report.
In response to a question raised by the Chairman of the Committee, Representative Bamidele Salam, on the total indebtedness of the HMOs to the federal government, Okeniyi confirmed that as of 2025, the total indebtedness had risen to N49,043,942.43.
The committee, in a unanimous decision, directed the hospital to submit a list of the HMOs and the specific amounts they owe in order to bring transparency to the ongoing issue.
